By Paul A. Harris
St. Louis, Nov. 16 - AMO Escrow Corp. and American Media Operations Inc. priced a $385 million issue of non-rated seven-year first-lien senior secured notes at par to yield 11½% on Tuesday, according to market sources.
The yield printed 37.5 bps beyond the wide end of the 11% area price talk.
J.P. Morgan Securities LLC ran the books.
The proposed $475 million two-part offering also includes a $90 million tranche of second-lien senior secured notes. However no terms surfaced on the second-lien notes, a source said on Tuesday.
The New York-based magazine publisher will use the proceeds to finance its exit from bankruptcy. The proceeds will be escrowed pending the exit.
| Issuer: | AMO Escrow Corp. and American Media Operations Inc.
|
| Amount: | $385 million
|
| Maturity: | Dec. 15, 2017
|
| Securities: | First-lien senior secured notes
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Co-managers: | Deutsche Bank Securities Inc., Credit Suisse Securities
|
| Coupon: | 11½%
|
| Price: | Par
|
| Yield: | 11½%
|
| Spread: | 933 bps
|
| First call: | Callable on Dec. 15, 2013 at 108.625
|
| Trade date: | Nov. 16
|
| Settlement date: | Dec. 1
|
| Ratings: | Non-rated
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 11% area
|
| Marketing: | Roadshow
|
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